A rational person would prefer receiving cash flows sooner because

Consider cash flows for Projects X and Y such as:

Project X Project Y
Year 1 $3000 $ 0
Year 2 $ 0 $3000

A) the money can be reinvested.
B) the money is nice to have around.
C) the investor may be tired of a particular investment.
D) the investor is indifferent to either proposal.


Answer: A

Business

You might also like to view...

It can be expected that companies selling perishable goods have a higher inventory turnover than companies selling nonperishable goods.

Answer the following statement true (T) or false (F)

Business

The formation of perceptions or views of others is part of ______ management.

a. environmental b. impression c. social d. relational

Business

Which of the following statements about bullying in the workplace is accurate?

a. Roughly 10 percent of the U.S. workforce reports having been bullied by a coworker or manager. b. High social dominance orientation suggests that an employee will be able to stand up to bullying in the workplace. c. The most common form of reported workplace bullying was pressure to commit an unethical act. d. Innate bullying tendencies are often linked to sexist beliefs.

Business

Regarding the major trading partners of the United States

A. the top 10 accounted for nearly 50 percent of total U.S. goods imports. B. China, Canada, and Japan were the three largest sources of U.S. goods imports. C. China, Canada, and Mexico were the three largest markets for U.S. goods exports. D. the top 10 accounted for nearly 50 percent of total U.S. goods exports. E. China was the largest recipient of U.S. goods exports.

Business